Meta begins mass layoffs May 20 as Zuckerberg invests in AI

Meta is preparing to roll out the first phase of significant job cuts on May 20, with additional layoffs likely later in 2026, according to three sources familiar with the matter.

The parent company of Facebook and Instagram is expected to reduce its workforce by about 10 per cent in the initial round, affecting nearly 8,000 employees globally, one of the sources told Reuters.

Sources also revealed that further reductions are being considered for the second half of the year, although details such as timing and scale remain undecided. Executives are said to be monitoring developments in artificial intelligence before finalising additional cuts.

Last month, Meta was reported to be planning to lay off 20 per cent or more of its global workforce. The company, however, declined to comment on the timeline or scope of the planned layoffs.

Chief Executive Officer Mark Zuckerberg has been investing heavily in artificial intelligence, committing hundreds of billions of dollars to transform the company’s operations around AI-driven efficiency. This trend mirrors broader developments across major U.S. technology firms.

Amazon recently reduced its corporate workforce by about 30,000 employees, nearly 10 per cent of its white-collar staff. Similarly, fintech firm Block Inc. cut nearly half of its workforce in February, with both companies attributing the moves to productivity gains from AI.

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According to Layoffs.fyi, a platform tracking global tech layoffs, more than 73,000 workers have already lost their jobs this year. In comparison, approximately 153,000 tech employees were laid off throughout 2024.

The upcoming cuts would mark Meta’s most substantial workforce reduction since its 2022–2023 restructuring, dubbed the “year of efficiency,” when about 21,000 jobs were eliminated. At that time, the company was grappling with declining stock prices and adjusting to post-pandemic growth realities.

Unlike then, Meta is currently in a stronger financial position. The company generated more than $200 billion in revenue and roughly $60 billion in profit last year, despite heavy spending on artificial intelligence. Its shares have also gained about 3.7 per cent since the beginning of the year, though they remain below last summer’s record high.

Executives now envision a leaner corporate structure with fewer management layers, relying increasingly on AI-assisted productivity as the company reshapes its future.